Ulta Beauty Community

Ulta, the other company I was thinking of cutting, has a surprisingly favorable relative valuation in the beauty retail space. It has decent margins and actually is able to direct decent amounts of buybacks.

Key Takeaways Wellness category expansion, exclusive partnerships, and curated marketplace enhance brand appeal to younger demographics and support stronger revenue growth and margins. Digital investments, loyalty program strength, and global expansion strategies boost customer retention, repeat purchases, and create diversified pathways for long-term profitability.

Key Takeaways Intensifying online and direct sales competition, along with evolving beauty trends, are pressuring Ulta's profitability and the performance of key product categories. Slow adaptation to sustainability and rising costs from store operations threaten customer loyalty, revenue growth, and returns on capital.